No money made, but still need to file tax form ...?

StudyingAccounting · 02-07-06, 12:42 AM

Quote:

Are business owners employees?

Sole proprietors, limited liability company members and partners are neither employees nor independent contractors of the business. Those owners don't have to fool with payroll tax withholding and paying. Instead, the owners mail quarterly estimated taxes to the IRS. However, working shareholders/owners of corporations - C or S corporations - are employees and subject to payroll taxes.

Source - Tax Savvy for Small Business, Nolo

I formed a company (LLC) last month, but the company itself has not made any money yet for variety of reasons (primarily because all paperwork hasn't finished yet). There is a good chance that the company will not make any money in the 1st quarter of 2006. Do I still need to file some tax form or I can disregard it at the end of this quarter, the 1st quarter of 2006?

**Avix** · 02-07-06, 05:56 AM

Might be different in your country, but in the UK if you have a business you have to submit your accounts... even with no income.

Recording all your expenses is just as important as the income... because you can deduct it.

Please remember I am by no means an accountant, and although 99% of accountants are useless... it is still advisable to hire one and hopefully one day you might find one that is good at their job.

stevo · 02-07-06, 09:41 PM

Here in Australia you also need to submit a tax form no matter what.

So you did not earn on cent all year?
You would have to declare that, no matter how small the amount was.

StudyingAccounting · 02-07-06, 10:20 PM

Quote:

Originally Posted by stevo

So you did not earn on cent all year?

Making a long story short, I have been earning as an individual, not as a company. I formed a company, but I'm still in the process of transferring all assets to the company; thus, the company itself has not made a penny yet.